House prices may not rise for a decade, experts warn

Decades of stagnant or falling house prices have been predicted by one of the nation's leading accountancy firms, as estate agents and mortgage lenders also warn that the next year will see a marked weakening in the property market.

PricewaterhouseCoopers says house prices are “still likely to be below 2007 levels in 2015 in real terms” – with a risk that almost a fifth of property will have lost real terms value by that time. It adds: “Even in 2020, after five years of relatively steady growth, there is a 50 per cent chance that real house prices in 2020 could be below 2007 levels.”